A recent plan by Bank of America (NYSE: BAC) to repurchase shares may have sent the stock higher, but at least one analyst is questioning the validity of the claim. The bank's recent plan to repurchase shares may show strength, but continued weakness means that it may not be completed anytime soon. KBW Analyst Jefferson Harralson noted that "a share repurchase authorization is very different than an actual purchase ... I'd be surprised if they follow through in the near term." This news comes just after the board approved a plan to repurchase up to 75 million shares of common stock for up to $3.75 billion during the next 18 months.

The move by Bank of America comes at a time when nearly all banks have faced mounting losses from rising defaults in their loan portfolios, especially loans tied to real estate. The announcement of a buyback jumped the share price quite substantially, but shares may come crashing back down after this announcement. After all, Bank of America already needs to set aside $5.83 billion in cash to cover current and future loan losses.

Shares of Bank of America dropped over 3 percent on the day.

Related Companies
JPMorgan Chase & Co (JPM)
Wells Fargo & Company (WFC)
Citigroup Inc. (C)
SunTrust Banks, Inc. (STI)
National City Corporation (NCC)
Wachovia Corporation (WB)

Northwest Airlines Corporation (NYSE: NWA) swung to a loss this quarter but things weren't nearly as bad as Wall Street had expected given the record fuel costs that hit the industry. The Minnesota-based company reported a loss of $377 million, or $1.43 per share, versus a profit of $2.15 million in the year-earlier second quarter. And let's not forget that all of this is just a year after it emerged from bankruptcy!

On a positive note, revenues for Northwest came in at $3.58 billion, up from $3.18 billion a year ago. The airline also disclosed that it has $3.3 billion in unrestricted liquidity and sees its merger with Delta Air Lines closing in the fourth quarter. The merger should help the company cut costs while lowering oil prices and fare raises should help improve margins over the next few quarters.

Northwest Airline Corporation is the direct parent company of Northwest Airlines, Inc. Northwest is engaged in the business of transporting passengers and cargo. Recently, the company has faced sharp declines in margins thanks to higher fuel costs and slower consumer spending. Shares of the company rose more than 5% during today's session.

Related Companies
Delta Air Lines, Inc. (DAL)
AMR Corporation (AMR)
UAL Corporaiton (UAUA)
Pinnacle Airlines Corp. (PNCL)
Southwest Airlines Co. (LUV)

Just when many thought the banking sector was improving, Wachovia Corporation (NYSE: WB) reported a huge second quarter loss. The financial services company reported a loss of $8.66 billion with a shocking $6.1 billion in writedowns. This compares to a net income of $2.34 billion a year earlier. Shares recovered on the day, but the news remains bearish for the sector.

Even the Chairman shared the disappointment: "These bottom-line results are disappointing and unacceptable," said Chairman Lanty L. Smith. "While to some degree they reflect industry headwinds and weaker macroeconomic conditions, they also reflect performance for which we at Wachovia accept responsibility."

Wachovia also cut its dividend again by 87% in an attempt to conserve about $700 million in capital. Clearly, this was a decision that had to be made in order to help the company stay alive over the long-term. The bank is also fresh off issuing some $8.3 billion in cpaital through preferred stock and other securities.

Finally, Wachovia has hired Goldman Sachs to help it analyze and value the billions of dollars in loans sitting on its balance sheets. Once it has a true idea of the valuation, shareholders will be able to better evaluate the company. Until then, Wachovia remains somewhat of an enigma.

Related Companies
JPMorgan Chase & Co (JPM)
Bank of America Corporation (BAC)
Northern Trust Corporation (NTRS)
Zions Bancorporation (ZION)
US Bancorp (USB)
Washington Mutual (WM)